Rule 57 Rules of Professional Conduct for Legal Practitioners
Rule 57 of the Rules of Professional Conduct for Legal Practitioners (RPC) 2023 is about Obligations of a legal practitioner. It is under Part II (Obligation of Legal Practitioners in Relation to Anti-money Laundering and Combating the Financing of Terrorism) of Chapter 2 (Guidelines and Rules on Anti-money Laundering and Combating Financing of Terrorism for Legal Practitioners) of the Rules. It provides as follows:
(1) For the purpose of this Chapter, the reporting and compliance obligation of a legal practitioner shall arise when—
(a) acting as formation agent of legal persons ;
(b) acting as, or arranging for another person (proxy) to act as a director or secretary of a company, a partner of a partnership, or similar position in relation to other legal persons ;
(c) providing a registered office, business address or accommodation, correspondence or administrative address for a company, a partnership or any other legal person or arrangement ;
(d) acting or arranging for another person to act as trustees of an express trust or performing the equivalent function for another form of legal arrangement ;
(e) acting as or arranging for another person to act as nominee shareholders for another person ; or
(f) conducting sales or purchase of real estate for clients or providing advisory services to clients in a real estate transaction.
(2) Where a legal practitioner fails or neglects to comply with the provisions of this Chapter, while rendering to clients’ professional services, identified in paragraph (1) of this rule, such a legal practitioner will be deemed to have committed a professional misconduct and will be liable to disciplinary proceedings in accordance with the Legal Practitioners Act.
(3) A legal practitioner shall comply with the provisions of this Chapter where he is instructed by a client in a transaction to advise or assist in the planning or execution of the transaction or otherwise acting for or on behalf of a client in the transactions listed in paragraph (1) of this rule.
(4) the obligations in paragraph (1) of this rule shall not apply to a Legal practitioner who only provides Notary services or merely certifies the execution or authenticity of a Power of Attorney or another instrument (not primarily prepared by that Legal practitioner) which may facilitate —
(a) buying and selling of real property or business entities ;
(b) managing of client money, securities, or other assets ;
(c) opening or management of bank, savings, or securities accounts ;
(d) organisation of contributions necessary for the creation, operation or management of companies ; or
(e) creation, operation or management of trusts, companies, foundations, or similar structures.
(5) A legal practitioner shall conduct an internal risk assessment to understand, identify, assess, and mitigate the risk of money laundering, terrorism financing and proliferation financing when providing any of the professional services listed in paragraph (1) of this rule.
